1. (C) SUMMARY: King Mohammed VI received NEA A/S Welch foran hour on February 25. The wide-ranging exchange of viewsfocused on bilateral cooperation, the Middle East PeaceProcess (MEPP), Iran, Kosovo, Lebanon, Mauritania, Syria,Algeria and Western Sahara. In most respects, the audiencemirrored the meeting that preceded it with Minister ofForeign Affairs Fassi Fihri and MFA Director General forMultilateral Affairs Mohamed Azeroual. However, we heardthat Amr Moussa,s latest visit to Beirut had been "acatastrophe;" the Emir of Kuwait did not plan to attend theArab summit in Damascus; and Morocco was looking at otherArab countries' reaction to Kosovo's declaration ofindependence. The King asked us to assist Mauritania andwarned that the POLISARIO must not attempt to occupy the areaeast of the berm in Western Sahara. In his meeting with theForeign Minister, Ambassador Welch pressed for an agreementon the status of the American schools in Morocco and informedthe Minister of a planned accord with the U.S. HolocaustMemorial Museum. END SUMMARY.

BILATERAL COOPERATION---------------------2. (C) Receiving NEA A/S Welch, the Ambassador, DCM and ErinYerger, the Executive Assistant to Deputy Assistant to thePresident for National Security Affairs Elliot Abrams, at theroyal palace in Marrakech on February 25, the King thankedthe United States for the excellent cooperation oncounterterrorism, the Millennium Challenge Account and theFree Trade Agreement. Foreign Minister Fassi Fihri alsoattended the audience.

KOSOVO------3. (C) The King noted that he had just met with the GreekForeign Minister, who urged him not to recognize Kosovo. TheKing and the Foreign Minister indicated that they intended todiscuss recognition with other Arab leaders at theOrganization of the Islamic Conference (OIC) Summit in Dakarin March. Fassi Fihri said the Serbian Foreign Minister hasalso requested a meeting.

MIDDLE EAST PEACE PROCESS----4. (C) Ambassador Welch began by underscoring that this isan important year for the region and that the President isdetermined to make progress on the MEPP. Welch briefed theKing and the Minister on the process and assured them thatthe Israelis and the Palestinians are making progress, butthe public is unaware of it. On Gaza, Welch averred thatIsraeli Prime Minister Olmert is focused on the least badoption. For his part, the King expressed deep concern aboutthe humanitarian situation in Gaza.

LEBANON-------5. (C) Turning to the continuing leadership vacuum inLebanon, A/S Welch said that we see three options: 1) tocontinue efforts to elect a President by consensus; 2) toelect a President with 50 percent of the vote plus one; or 3)to support the Siniora government. Welch indicated that weincreasingly believe the third option affords the best meansto support Lebanon,s institutions. Asked about Arab LeagueSecretary General Amr Moussa's visit to Beirut, Fassi Fihri

SIPDIScharacterized it as 'a catastrophe.'

SYRIA AND THE ARAB LEAGUE SUMMIT--------------------------------6. (C) Noting that Kings Mohammed VI and Abdullah II ofJordan had come to power at approximately the same time as

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President Bashar al-Assad, Welch decried Syria,s lostopportunities. Welch said that he understood that the SyrianForeign Minister would be in Marrakech on February 26 todeliver an invitation to the Arab Summit in Damascus, andWelch predicted that attendance would be poor. The King saidhe understood that the Emir of Kuwait did not plan to attend,implying that Morocco would be represented at the ministeriallevel at best.

IRAN----7. (C) Ambassador Welch asked if he might say a few wordsabout Iran and its pursuit of nuclear weapons. The Kingresponded that he understood that Iran had suspended itsnuclear weapons program. Welch thanked the King for theopportunity to clarify, declaring that the U.S. intelligenceestimate had been misunderstood and that the reporting onthis issue has been unclear. Welch said that we continued tobelieve that Iran was pursuing nuclear weapons; so PresidentBush was seeking a middle ground "between the bomb andbombing," without giving up any option. Diplomatic pressureis best for now. When the King asked what that middle groundmight look like, Welch said that more SecurityCouncil-approved sanctions loom and that Iran must accept adiplomatic solution.

ALGERIA-------8. (C) The conversation then turned to Algeria, and Welchasked if the GOM had any views on President AbdelazizBouteflika,s plans. The King said he understood thatBouteflika was amending the Constitution to permit a thirdterm, and Welch noted wryly that Bouteflika was doing sowithout Syrian assistance. The King praised the "frustrated"Algerian Ambassador in Rabat for his tireless efforts toimprove bilateral relations, stating, &We have no relationswith Algeria, except for limited cooperation on securityissues." In spite of obvious opportunities for cooperationin agriculture, energy and a host of other areas, PresidentBouteflika and his government clearly prefer the status quo.The King noted that he had even traveled to Algiers to try tobreak the impasse, but the GOA continues to insist on theWestern Sahara issue being resolved before proceeding withother bilateral or regional initiatives.

WESTERN SAHARA--------------9. (C) The King and Fassi Fihri expressed grave concernabout the POLISARIO's stated plans to move people into thearea east of the berm. The King said bluntly that Moroccocould not allow that. Praising the King,s autonomyinitiative, Welch urged the GOM to press ahead with theManhasset talks. He said support for Morocco,s position isgrowing ever so slowly. Separately, Welch cautioned theKing's intelligence chief against militarization of thedispute.

MAURITANIA----------10. (C) Looking at Western Sahara's neighbor Mauritania, theKing stressed that Mauritania needs help and that he will seethe Mauritanian President in Dakar.

AMERICAN SCHOOLS----------------11. (U) Welch took advantage of a few private minutes withFassi Fihri to underscore the need for an agreement on thestatus of the American schools in Morocco. Noting that hehad attended the Rabat American School (RAS)as a child, Welchsaid if a solution is not found soon that RAS could notproduce more David Welches. Fassi Fihri replied that he had

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been in contact with Prime Minister Abbas El Fassi andDirector General of Taxation Nouredine Bensouda about ourproposal.

U.S. HOLOCAUST MEMORIAL MUSEUM------------------------------12. (U) Welch also raised made the Minister aware of theplanned signing of an accord between the U.S. HolocaustMemorial Museum and the Moroccan National Archives. Welchalso mentioned that the Museum still planned to host aconference on the Holocaust in Arab lands.

COMMENT-------13. (C) Although his face looked puffy, the King appearedrelaxed and rested after four weeks in France. The meetingitself underscored how much U.S. and Moroccan views coincide. END COMMENT.